April 20, 2020 GIPC...GIPC Quarterly Update: scheduled for Monday, April 20, 2020 for GIPC, SME Pool, all ECIA members Subject Matter Experts from ECIA Member Companies P r o j e c

GIPC

April 20, 2020

Agenda:

1. ECIA with David Loftus, ECIA President and CEO2. COVID-19 with Dale Ford, ECIA Chief Analyst

3. Paperless Manufacturer COC with Pete Shopp, Sr. VP Business Operations at Mouser Electronics

4. COVID-19 Warehouse Best Practices with Teri Ivaniszyn, VP Operational Excellence at Digi-Key

5. Design Registration Project with the Manufacturers Council6. The Channel Channel Podcast with Christophe Beque from

IBM7. The Trust Bridge with ECIA8. Compliance & Risks with ECIA9. The SME Pool – Why register? and What’s the time

commitment?

ECIAwith

David Loftus

ECIA President and CEO

Dale Ford – Chief Analyst

April 20, 2020

The Long Electronics Winter was Ending

Is Spring in the Air … or a Virus?

The Future Was Bright – Then COVID-19 …

• Confirmed cases in

211

countries/territories

o All but 24

• These countries

represent 7.64 billion

people; 99.4% of the

global population

• Strongest presence in

northern hemisphere

where it is colder

The Global Spread of COVID-19

Source: WHO

Source: WHO

Source: WHO

Source: WHO

Source: WHO

Source: WHO

Placing Viruses in Perspective

VIRUS

YEAR

IDENTIFIED CASES DEATHS

FATALITY

RATE

NUMBER OF

COUNTRIES

Marberg 1967 466 373 80.0% 11

Ebola 1976 33,577 13,562 40.4% 9

Hendra 1994 7 4 57.1% 1

H5N1 Bird Flu 1997 861 455 52.8% 18

Nipah 1998 513 398 77.6% 2

SARS 2002 8,096 774 9.6% 29

H1N1* 2009 1,632,258 284,500 17.4% 214

MERS 2012 2,494 858 34.4% 28

H2N9 Bird Flu 2013 1,568 616 39.3% 3

COVID-19** 2020 2.330,259 160,917 6.9% 196

* Between 2009 and 2010; ** As of April 18, 2020

Sources: CDC; UN; World Health Organization; New England Journal of Medicine; Malaysian Journal of Pathology; CGTN; The Lancet

Grim Economic Forecast from IHS Markit

The rapid spread of the COVID-19 virus beyond mainland China has set the global economy up for the

worst growth downturn since the 2008-09 financial crisis

• The United States, Europe, and Japan are headed for recession

• The IHS Markit forecast for world real GDP growth in 2020 has been revised down to 0.7% in

response to the spread of the virus

• Growth below 2.0% is classified as a global recession

• The number of active world cases is assumed to top out by the third quarter

• Nevertheless, the result will be a U-shaped rather than V-shaped cycle, as a sharp reduction in near-

term growth is followed by a slow recovery

• Forecast risks are overwhelmingly on the downside and depend crucially on how governments

respond

• Central banks have already taken emergency actions, but the fiscal response is more uncertain

North America Sentiment Survey Trends Turning Down

Source: ECIA Electronic Component Sales Trends Survey

Long-term Semiconductor Growth Trends

Source – WSTS

Overall Semiconductor Growth Cycle Aligned

• Memory ICs pull out of their steep dive

• Other Semiconductors break into positive growth by end of 2019

• Recovery killed in Q1; Potential to revitalize in H2??

Source – WSTS

Semiconductor Revenue Growth CycleGDP Relationship

• Current Cycle – Continues 20-year pattern of alignment with GDP

• Technology/Market forces aligning to support growth beyond 2020

Source: IHSM Global Insight and Informa Tech

Semiconductor / Electronics Components Market Outlook – Near-Term

Multiple potential scenarios:

• “Containment” of virus by March / April

• Market dip through H1

• Market snapback in H2 that could drive revenue growth up to 3% to 5%

• Large, regionally focused outbreaks extend into Q3

• Market will not recover in 2020 and potential for revenue collapse by 20%

• Global pandemic continues into Q4

• Global economic decline could suppress semiconductor market for multiple

years

• Potential for multiple company failures and market consolidation

Market Outlook – Long Term Future Still Bright!The Developing Technology Triumverate

Manufacturer COCwith

Pete Shopp

Sr. Vice President Business

Operations

Mouser Electronics

COVID-19 Warehouse Best Practiceswith

Teri Ivaniszyn

VP Operational Excellence

Digi-Key

Design Registration – Manufacturing Council

# Key Deliverables: Timeline:

1

A

Best Practices Document covering each technology;

Active/Semi, Electromechanical, Passive

1

B

Recommendation to modernize the D-Reg process using new

and/or current technology

2 Distribution of “Best Practices Document” for members only

(Press Release, Website posting)

3 Podcast with D-Reg work group leader

# Key Issues/Challenges:

1 Industry collaboration and SME support from ERA, GEDA,

ECIA board executives.

# Key Decisions:

1 Approval and support from ECIA BOD and Councils to include

ERA and GEDA

2 GIPC recruitment/selection of Work Group Leader; endorsed

by ECIA BOD and Councils, ERA, GEDA

3 Guidance on 1B (see above)

Industry Issue:

The design registration process has been active in the

electronic component industry for over 3 decades, serving manufacturers,

manufacture representatives and distributors. It has been requested we review

this process for (A) Current State (B) Desired State (C) Future State:

Across Technology – Active/Semi, Electromechanical, Passives

• Success Vs. Pain-points– identify where the process does and does not work

• Key Differences – between programs in the supply chain

• Levels of Satisfaction – survey key stakeholders/analyze/publish results

• Process Flowcharts – document collective best practice process in each

technology highlighting mechanics and policies

• New Business Models “disrupting” D-Reg – industry examples

• Future State – research, ideas and recommendations

– Technology options – API, Blockchain, ETL, Software, etc..

Industry Benefits:

• Modernizing the process using new and/or current technology

• Streamlining data exchange

• Improve speed and accuracy of decision process

• Improved inventory management

• Harmonization of industry partnerships

• Positive financial impact

Assignment Proposed by: Manufacture Council

Additional Collaboration Required: ERA, GEDA, ECIA – Distributor Council,

Manufacture Rep Council

Subject Matter Expert Group: Business Process/Operations, Sales, Marketing,

Finance

Working Group Resources: Work Group Leader, 10-12 SMEs, GIPC member

BOD Approval:

Date:

ECIA's Vice President of Industry Practices Don Elario discusses IBM's blockchain solutions for the electronics industry. Christophe Begue provides an update on how the industry is adopting IBM's TradeLens and Trust Your Supplier, as well as some insights into how some companies are leveraging Blockchain to create new business offerings.

ECIA Posts ‘The Channel Channel’ Podcast – IBM’s Blockchain Expert Christophe Begue

Company WebsiteThetrustbridge.co.ukCompany DescriptionThe Trust Bridge™ offers organizations a unique combination of expertise, advice, and practical implementation, combined with independently accredited training, in the data protection and operations area, and in cyber security. We operate with all the touchpoints of data protection: GDPR (General Data Protection Act), CCPA (California Consumer Privacy Act), and other global data privacy regulations, PECR (Privacy and Electronic Communications Regulations) and linked e-privacy laws.

The Trust Bridge™ team delivers confidence and reassurance that wherever you operate and however you engage in data protection and privacy issues across one or multiple locations, our knowledge and approach can be tailored to the needs of your business, organization or association.

About Us

Compliance & Risks helps manufacturers, retailers and their supply chain partners

monitor and manage requirements, regulations and standards for a cleaner, safer

and better world.

We create business advantage for clients by providing reliable legislative information, insights and actions through C2P, our knowledge management software platform, consulting, market access, managed services and other solutions. The company is recognized as the end to end global regulatory solutions provider across the technology, consumer goods and retail, industrial goods and life sciences sectors. Headquartered in Cork, Ireland, we also have offices in Brussels, California, London and New York.In the beginningWhen Damien McGovern, an Irish barrister, was working with Deloitte in Brussels, he was overwhelmed by the amount of EU official journals being delivered daily to his desk. Realizing that there must be another option, he conceived a more efficient way to assess the risks and opportunities in proposed legislation. Damien’s experience with legal, regulatory, and compliance issues, and an understanding of the problems for his customers of not having suitable tools for a difficult job, gave rise to our knowledge management platform, C2P and the establishment of Compliance & Risks in 2002.

➢ Opportunity to Influence

➢ Impact Your Company’s Efficiencies and

Standardization through Best Practice Awareness

➢ Collaborate on Common Challenges and Obstacles

in Your Area of Expertise

➢ Industry Networking

➢ Take Advantage of this Talent Development Platform

Why (Participate in the GIPC or a Subject Matter Expert pool?)

Time Commitment

➢ Quarterly GIPC Update – 45 min/quarter

➢ Occasional ECIA website review and group emails

to keep up with news and project activity – 30

min/month

➢ When you see a project that is in your area of

expertise and interest you…get involved in that

working group – 3-to-5 hours/month

•Board of

Directors

Sets Priorities

Approves Projects

Member Communication

•Councils•Manufacturer

•Manufacturer Representative

•Distributor

Councils work on specific items related to their area

Councils work jointly on items with common purpose •Global

Industry

Practices

Committee

GIPC works on items approved and assigned by the BOD

GIPC investigates and submits items for BOD and Council review and approval

How it works today…

Subject

Matter ExpertResource Pool

Logistics Services

QualityEnvironmental Compliance

Blockchain Solutions

Teri Ivaniszyn – VP Operational Excellence, Digi-Key Chair Dawn Manhart – Director Global Sales Operations, Littelfuse Past Chair Melanie Pizzey – VP Global Business Operations, TTIPete Shopp – SVP Business Operations, Mouser ElectronicsTom Griffin – President, Catalyst SalesKimberly Appleton – VP Global Sales Operations, ON SemiRuss Dzielak – Director of Channel & Key Accounts, Phoenix ContactVictor Meijers – SVP ECIADon Elario – VP Industry Practices ECIA

Business Operations

IT SecurityInternational Trade Compliance

GIPC

Manufacturer COC Paperless Process: Logistics Services – IT Project – ADI and Mouser Electronics

Design Registration: Business Operations – Scope Document – Manufacturer Council Work Group Q1’2020

IBM Podcast: ECIA/GIPC: Blockchain – Christophe Begue speaks on Blockchain Solutions; Podcast release week of February 17 th

Trust Bridge: IT Security – New ECIA Service partner; working on 1-day virtual workshop to address Privacy and Cyber Security trends

Compliance & Risk: Environmental Compliance, Quality – working on 1-day virtual workshop to address Environmental/Regulatory trends

Recruitment: GIPC – recruiting 1 small manufacture and 1 small distributor to join committee level above, 1H 2020

SME Resource Pool – we review why you should register and what is the time commitment

GIPC Quarterly Update: scheduled for Monday, April 20, 2020 for GIPC, SME Pool, all ECIA members

Subject Matter Experts from ECIA Member Companies

P

r

o

j

e

c

t

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*Updated March 2020

RoHS Umbrella Industry Project

International

Trade

compliance

IT SecurityBusiness

Operations

Quality

Blockchain

Solutions

Environmental

Compliance

Logistics

Services